I don’t see google paid hosting as a good move for google.
Web hosting is a (still) highly fragmented marketplace.
Web hosting is fragmented market because it is a commodity product and there are low barriers to entry. I don’t see google overcoming either of these issues. They built their search brand based on having a superior product. I am not sure that google can offer a truly superior product in the hosting space.
with the millions in extra cash that they have lying around, Google can easily acquire even the most premier hosting company and use it as a base to build a business around. Alternatively, Google could simply buy up tons of customers from smaller hosts.
The dot bomb strategy didn’t work in 1999, why would it work now?
The barriers to entry are extremely low
Small companies enter markets where the barriers to entry are low. Large companies try to create barriers to entry.
Arguably, the single most important element in gaining new customers is online advertising
I am sure that time warner makes a bunch of money on advertising for snake oil. that doesn’t mean that they should sell the snake oil.
Web hosting requires tons of servers, data centers, and skilled technical support staff.
I think these are hygienic factors, not necessarily competitive advantages. Apple has lawyers and GM has lawyers, therefore Apple should make cars? Google’s technological innovations have been in using very cheap redundant hardware. I am not sure that this transfers to commodity paid hosting.
Email and Web hosting go hand in hand.
Google is quite new to large scale email. Also, if you paid for the email, why would you accept the advertising? I don’t see the synergy.
Many businesses and consumers will only do business with a brand that they trust.
There are lots of trustworthy brands already in the hosting market.
A google browser makes sense — one more way to show google ads and block competitors ads. I don’t see hosting as a good fit for google. That doesn’t mean they won’t do it. I just don’t think they would do it until they lacked better things to do, things that don’t drift as far from their core business: selling advertising.